Medicaid & Revocable Family Trusts

Medicaid and trusts protect your heirs, but in different ways.

Medicaid and trusts can be an important part of financial planning. However, you must take Medicaid into account when you set up your trust, or the trust funds will be taken into consideration for your Medicaid benefit eligibility.

Family Trusts

A family trust is another name for a revocable living trust. This is a trust established while you are still living, used to designate how funds and property will be distributed after your death. "Revocable" means that changes can be made to it at any time.

Medicaid Eligibility

Medicaid is a government program for those who need medical or financial assistance with their health care. There are income and asset guidelines to qualify for this assistance, including guidelines for trusts.

Medicaid and Family Trusts

Medicaid counts any funds that are accessible to you as assets. Revocable trusts are considered accessible because you can change the trust at any time, and you have the ability to take funds and property out of the trust. Assets in revocable trusts are counted when you apply for Medicaid benefits.

References

• Centers for Medicare and Medicaid Services: Treatment of Trusts
• Elder Law Answers: Medicaid Planning
• Eldercare Online: Estate Planning